H&M and Klarna announce global partnership
8 Oct 2018
Swedish fashion chain H&M has announced that it is entering into a global partnership with Klarna, which will see one of Europe’s leading payments providers further integrating H&M’s digital and physical stores to give customers a “seamless, personalised and engaging shopping experience”, as well as the fashion group investing in the company.
The partnership will see Klarna powering the H&M Club1 payment programme, providing an enhanced omni-channel customer payment offering, as well as a streamlined post-purchase service in the H&M app.
In addition, Klarna’s single technological platform will aim to offer a full-service end-to-end customer journey across all H&M channels, including frictionless in-store, mobile and online payments, simplified deliveries and returns and the flexibility to decide how and when to pay including the popular ‘try before you buy’ pay later service, which will be integrated into the next generation of the H&M app and H&M Club.
The first phase of integration, which aims to “elevate the modern shopping experience for customers” is expected to go live in 2019 and will be for the UK and Swedish markets.
The Swedish fashion group, which includes H&M, & Other Stories, Cos, and Arket, has also confirmed that it will make an undisclosed investment in Klarna, stating only that the “equity investment demonstrates a shared commitment and vision to the continual development of smarter retail where optimisation is constant in order to meet customers changing expectations and preferences”.
Karl-Johan Persson, chief executive of H&M group said in a press release: "We are impressed with what Klarna has achieved to date and now we will work together to elevate the modern shopping experience. This strategic partnership between H&M group and Klarna is based on a joint relentless focus on creating great customer experiences.”
H&M Group invests in payments provider Klarna
Sebastian Siemiatkowski, chief executive and co-founder of Klarna, added: "Retail is changing, and the future of fashion retail is high tech powering high touch experiences for customers. Regardless of how and when customers want to shop, we need to be there for them. Customers will no longer be forgiving of unnecessary complexity or when their retail experience does not leverage the insight available to make their engagement smart, personal and easy.
“This partnership is rooted in a shared obsession about just how good that shopping experience should be. Together we have worked hard on developing a unique solution for in-store and online that will delight customers, drive economic value and build loyalty.”
Daniel Claesson, head of business development H&M group, said: "We at H&M are very excited about this partnership. We want to make it possible for customers to move freely between the various channels and choose how they want to shop and experience our offering online and in-store.
“This partnership will bring tailor-made payment solutions to our customers and accommodate evolving shopping patterns and needs. This includes the possibility to "try before you buy" which is very relevant to online fashion retail today and to pay with their mobile phone directly through the H&M app both in-store and online.”
Images: courtesy of H&M